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Credit Card Cash Withdrawal

Credit Card Cash Withdrawal Charges

Last Updated 22nd May 2022

  • Credit Card Cash Withdrawal is one of the easiest options to get money when a person is in a hurry.
  • Cash advance credit cards are not offered by all financial institutions and it varies from card to card as well.
  • Credit card cash withdrawal limit is different for every bank generally it ranges between 20%-40% of the credit limit.
  • To avail such facility, a cardholder will have to pay cash advance fee, finance charges.
  • An interest rate will be charged on the withdrawn amount from the date of transaction till the amount is paid back in full.
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About Credit Card Cash Withdrawal

Half a century ago, Barclays launched the first credit card in the world and since then the relationship with money has changed and now borrowing has become much easier. There are various facilities offered by the credit card companies but one such facility which provides cash instantly is known as Credit Cash Withdrawal.

Credit Cash Withdrawal is also termed as Credit Card Cash Advance, which means that a cardholder can withdraw cash instantly from any ATM across the world using the credit card. A cardholder can instantly get funds without submitting any documents, however, all the financial institutions do not offer such a facility and if they do, they charge a penalty for the same.

Credit Card Cash Withdrawal Limit

Credit Card Cash Withdrawal limit is set by the credit card companies which allows an individual to withdraw the cash off from the available credit limit. Credit limit is a maximum amount of money which lenders extend to a credit cardholder for a particular line of credit. Generally, financial institutions have set credit card cash withdrawal limits to 20%-40% of the credit limit. For example:- HDFC Bank has set credit cash withdrawal limit to 40% of the credit limit and the cash withdrawal limit for SBI Unnati card is up to 80% of the credit limit.

Interest Rate on Cash Withdrawal from Credit Card

Withdrawing money from a credit card can get cash instantly but it is a costly affair. The day the cardholder withdraws money from the ATM, he/she will be charged with interest rate. The interest rate typically ranges between 2.5%-3.5% per month and not only interest rate but a person will also have to pay a transaction fee which is 2%-3% of the withdrawn amount.

What is Credit Card Cash Advance Fee?

Every time a cardholder withdraws money from an ATM using the credit card, they will have to pay a credit card cash advance fee. The advance fee typically ranges between 2.5%-3% of the transaction amount, subject to a minimum amount of ₹ 250 - ₹ 500. Every month the advance fee is reflected in the credit card billing statement. A cardholder also has to pay finance charges with advance fee and it is the same as cash advance fee and it is levied till the time that amount is paid back.

Credit Card Cash Advance Fee Charged By Top Banks:-

Bank Name Cash Advance Fee
SBI 2.5% of the transaction amount, subject to minimum ₹ 500
HDFC Bank 2.5% of the withdrawn amount or ₹ 500 whichever is higher
ICICI Bank 2.5% of the withdrawn amount, subject to minimum ₹ 250
Axis Bank 2.5% of the withdrawn amount, subject to minimum ₹ 250
HSBC Bank 2.5% of the withdrawn amount, subject to minimum ₹ 300
Citibank 2.5% of the transaction amount, subject to minimum ₹ 500
Standard Chartered Bank 3% of the transaction amount, subject to minimum ₹ 300

Advantages and Disadvantages of Credit Card Cash Withdrawal

There is a saying, “Nothing is perfect in the world and everything has its pros and cons”. So, the following are the advantages and disadvantages of credit card cash withdrawal.

Advantages Disadvantages
During the financial crunch, cash can be withdrawn instantly, 24*7 from any ATM. Higher interest rate will be charged from the date the cardholder withdraws the amount.
A cardholder is not required to submit any documents. Cash advance fees and finance charges are levied on the translation amount.
A person with a good credit history can get their credit card cash limit extended. A user will not be able to use or redeem the reward points if they withdraw the cash using a credit card.

FAQs

Do all banks provide Credit Cards Cash Withdrawal?

No, all banks do not provide credit card cash withdrawal and there are few banks who offer this facility but it is not offered on all the credit cards. At the time when you avail the credit card, you should check if the facility is offered.

Is there any approval required for Credit Card cash withdrawal?

No, there is no need for any approval to withdraw money from credit cards. Also, you are not required to submit any kind of documents to the lender.

How is interest calculated on cash advances?

The interest is calculated on cash advances and is calculated the same way it is charged on credit card transactions. The interest is charged on a monthly basis and it is charged from the date the transaction is made and till the amount is paid in full.


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*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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